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Reply to "I genuinely don't understand these rate hikes"
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[quote=Anonymous]The real interest rate is the interest rate minus inflation. It's currently negative in many investments. That's bad because your purchasing power is decreasing over time with these investments. Negative real interest rates encourages borrowing, whch in turn, increases inflation by creating more dollars. https://www.investopedia.com/terms/r/realinterestrate.asp [/quote]
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